1. DECISION MAKING MODEL
a. Use of Ansoff Matrix to communicate intended strategic direction.
i. How the Ansoff Matrix can be used to show strategic direction of the business; e.g. if they're expanding into new markets, this would be seen as Market development, which is more risky than Market Penetration.
2. DECISION MAKING TECHNIQUES
a. Investment Appraisal
i. Simple Payback
ii. Average Rate of return
iii. Discounted Cash-Flow (Net Present Value only)
b. Decision Trees
i. Construction and interpretation of simple decision tree diagrams, limitations of technique.
c. Project planning and Network Analysis
i. Nature and purpose of Critical Path Analysis
ii. Be able to draw simple networks
iii. Calculate Earliest Start Time and Latest Finish Time
iv. Identify the critical path and calculate the total float
v. Limitations of technique
d. Contribution and special order decisions, determining whether a special order is worth the effort.
3. CONTRIBUTION WITH RESPECT TO SPECIAL ORDER DECISIONS
a. Need for contingency planning
b. Consideration of risk of operating in a country or seeking growth in new overseas markets
i. Use the Ansoff Matrix to consider why a company may seek to invest in a factory overseas, for example to reduce dependence on domestic market through planning for growth.
c. Risk reduction through information from decision-making models